05:47 AM EST, 02/02/2026 (MT Newswires) -- Asian stock markets retreated Monday, led by a 5.3% tumble on Seoul's major equity index, as traders mulled the likely ascent of a relatively hawkish chair to the US Federal Reserve, as well as plummeting precious-metals prices.

On Friday, US President Donald Trump said he has picked Kevin Warsh to replace Jerome Powell as Fed chair in May, leading to sell-offs in gold, silver and certain tech segments.

Hong Kong, Shanghai and Tokyo finished in the red, as did most other regional exchanges. The S. Korean KOSPI jumped 5.3%.

In Japan, the Nikkei 225 opened evenly, but drifted lower, finishing down 1.3% as traders booked profits on tech issues, and awaited pending national elections.

The benchmark Nikkei 225 fell 667.67 to 52,655.18, as losing issues outnumbered gainers 131 to 93.

Leading the upside was Hino Motors, up 6%, while semiconductor-fabrication equipment-maker Lasertec declined nearly 14%, with both moves following earnings reports.

In economic news, the headline Japan manufacturing purchasing managers index (PMI) struck 51.5 last month, rising above the neutral 50-mark recorded in December, which separates growth from contraction, reported S&P Global.

In Hong Kong, the Hang Seng Index opened lower and decline thereafter, closing down 2.2% of soft tech, property and mining shares.

The broad gauge Hang Seng fell 611.54 to 26,775.57, as losing issues outnumbered gainers 75 to 11. The Hang Seng TECH Index lost 3.4% on the day, while the Mainland Properties Index fell 2.4%.

Leading the upside was Macau gaming-house Sands China, gaining 4.1%, while EV-maker BYD declined 6.9%.

On the mainland, the Shanghai Composite fell 2.5% to 4,015.75.

In economic news, the seasonally adjusted headline China manufacturing PMI rose to 50.3 in January from 50.1 the previous month, reported S&P Global.

On the other regional exchanges, the Taiwan TWSE declined 1.4%; the Australian ASX 200 fell 1%; the Singapore Straits Times Index lost 0.3%, and the Thai Set declined 0.3%. In late trading in Mumbai, the Sensex was down up 1.1%.

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